In the following day’s ETF commentary, we said we would be looking for a potential, low-risk re-entry buy point into UNG. Specifically, we said, “Even though we have closed this trade, UNG could still move much higher in the intermediate-term. The rally over the past week was a breakout above a valid base of consolidation, which could set into motion a new intermediate-term uptrend for this ETF. As such, UNG is now on our radar screen for potential re-entry after it either pulls back or forms a bull flag chart pattern. There is a good chance we will be able to re-enter the trade at a slightly lower price, or possibly near the current price, but with a more positive reward to risk ratio after UNG undergoes at least a near-term correction.”

Since then, UNG has indeed formed a bull flag on its daily chart. As such, we are now listing it in the ETF watchlist section of today’s (October 9)Â Wagner DailyÂ swing trading newsletter as a potential swing trade re-entry. Since it is a commodity ETF, it’s a bonus that this ETF has a low correlation to the direction of the main stock market indexes, which may be headed lower in the near-term. Below, we have annotated the bull flag chart pattern that we were anticipating to subsequently develop after exiting the trade on October 2:

Follow Us Around The Web:

Most Recent Posts

DISCLAIMER: Past results are not necessarily indicative of future results. There is a high degree of risk for substantial losses in trading securities. All data and material on this website and/or electronically delivered to individuals is for informational purposes only, and should not be construed as an offer or solicitation of an offer to buy or sell any securities. By accessing this site, user understands and agrees to full terms of this disclaimer. You may view our Privacy Policy here.